BT 1998 Annual Report Download - page 76

Download and view the complete annual report

Please find page 76 of the 1998 BT annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 87

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87

O T E S T O TH E F I N A N C I A L S TAT E M E N T S
30. United States Generally Accepted Accounting Principles (continued)
Cash flows under FRS 1 in respect of interest received, interest paid (net of that capitalised under US GAAP) and taxation would
be included within operating activities under SFAS No. 95. Cash flows from purchases, sales and maturities of trading securities,
while not separately identified under UK GAAP, would be included within operating activities under US GAAP. Capitalised interest,
while not recognised under UK GAAP, would be included in investing activities under US GAAP. Dividends paid would be included
within financing activities under US GAAP.
The following statements summarise the statements of cash flows as if they had been presented in accordance with US GAAP,
and include the adjustments which reconcile cash and cash equivalents under US GAAP to cash at bank and in hand reported
under UK GAAP.
1998 1997 1996
£m £m £m
)))))))))))%!!!!!00005
Net cash provided by operating activities 3,847 5,066 5,026
Net cash used in investing activities (4,198) (2,589) (3,257)
Net cash used in financing activities (1,647) (1,517) (975)
00000000001051!!!50000
Net increase (decrease) in cash and cash equivalents (1,998) 960 794
Effect of exchange rate changes on cash 21 (14) 4
Cash and cash equivalents under US GAAP at beginning of year 2,343 1,397 599
00000000001051!!!50000
Cash and cash equivalents under US GAAP at end of year 366 2,343 1,397
Short-term investments with original maturities of less than 3 months (304) (2,317) (1,276)
00000000001051!!!50000
Cash at bank and in hand under UK GAAP at end of year 62 26 121
00000000001051!!!50000
Current asset investments
Under US GAAP, investments in debt securities would be classified as either trading, available for sale or held-to-maturity. Trading
investments would be stated at fair values and the unrealised gains and losses would be included in income. Securities classified
as available-for-sale would be stated at fair values, with unrealised gains and losses, net of deferred taxes, reported in
shareholders’ equity. Debt securities classified as held-to-maturity would be stated at amortised cost. The following analyses do
not include securities with original maturities of less than three months.
At 31 March 1998, the group held trading investments at a carrying amount of £384m (1997 – £173m) with fair values totalling
£389m (1997 – £173m). Held-to-maturity securities at 31 March 1997 and 1998 consisted of the following:
Amortised Estimated
cost fair value
£m £m
111155555
UK Government securities and other UK listed investments 25 25
Commercial paper, medium term notes and other investments 18 18
55555555555555555555555555111!!!01111110111
Total at 31 March 1998 43 43
0000000000555555111!! 01111110111
UK Government securities and other UK listed investments 44 44
Commercial paper, medium term notes and other investments 439 439
55555555555555555555555555111!!!01111110111
Total at 31 March 1997 483 483
0000000000555555111!! 01111110111
The contractual maturities of the held-to-maturity debt securities at 31 March 1998 were as follows: Cost Fair value
£m £m
111155555
Maturing on or before 31 March 1999 18 18
Maturing after 31 March 1999 25 25
55555555555555555555555555111!!!01111110111
Total at 31 March 1998 43 43
0000000000555555111!! 01111110111